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10Parallel exemptions

(1)An agreement is exempt from the Chapter I prohibition if it is exempt from the Community prohibition—

(a)by virtue of a Regulation,

(b)because it has been given exemption by the Commission, or

(c)because it has been notified to the Commission under the appropriate opposition or objection procedure and—

(i)the time for opposing, or objecting to, the agreement has expired and the Commission has not opposed it; or

(ii)the Commission has opposed, or objected to, the agreement but has withdrawn its opposition or objection.

(2)An agreement is exempt from the Chapter I prohibition if it does not affect trade between Member States but otherwise falls within a category of agreement which is exempt from the Community prohibition by virtue of a Regulation.

(3)An exemption from the Chapter I prohibition under this section is referred to in this Part as a parallel exemption.

(4)A parallel exemption—

(a)takes effect on the date on which the relevant exemption from the Community prohibition takes effect or, in the case of a parallel exemption under subsection (2), would take effect if the agreement in question affected trade between Member States; and

(b)ceases to have effect—

(i)if the relevant exemption from the Community prohibition ceases to have effect; or

(ii)on being cancelled by virtue of subsection (5) or (7).

(5)In such circumstances and manner as may be specified in rules made under section 51, the Director may—

(a)impose conditions or obligations subject to which a parallel exemption is to have effect;

(b)vary or remove any such condition or obligation;

(c)impose one or more additional conditions or obligations;

(d)cancel the exemption.

(6)In such circumstances as may be specified in rules made under section 51, the date from which cancellation of an exemption is to take effect may be earlier than the date on which notice of cancellation is given.

(7)Breach of a condition imposed by the Director has the effect of cancelling the exemption.

(8)In exercising his powers under this section, the Director may require any person who is a party to the agreement in question to give him such information as he may require.

(9)For the purpose of this section references to an agreement being exempt from the Community prohibition are to be read as including references to the prohibition being inapplicable to the agreement by virtue of a Regulation or a decision by the Commission.

(10)In this section—

“the Community prohibition” means the prohibition contained in—

(a)

paragraph 1 of Article 85;

(b)

any corresponding provision replacing, or otherwise derived from, that provision;

(c)

such other Regulation as the Secretary of State may by order specify; and

“Regulation” means a Regulation adopted by the Commission or by the Council.

(11)This section has effect in relation to the prohibition contained in paragraph 1 of Article 53 of the EEA Agreement (and the EFTA Surveillance Authority) as it has effect in relation to the Community prohibition (and the Commission) subject to any modifications which the Secretary of State may by order prescribe.

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